DoD awards $9.2M for advanced composite assembly innovation, focusing on engineering services in Pennsylvania

Contract Overview

Contract Amount: $9,199,997 ($9.2M)

Contractor: National Center for Defense Manufacturing and Machining

Awarding Agency: Department of Defense

Start Date: 2024-09-20

End Date: 2027-09-20

Contract Duration: 1,095 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE TASK ORDER IS IN SUPPORT OF THE PERFORMANCE WORK STATEMENT, ENTITLED "ADVANCED COMPOSITE ASSEMBLY INNOVATION - PHASE 2".

Place of Performance

Location: BLAIRSVILLE, INDIANA County, PENNSYLVANIA, 15717

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $9.2 million to NATIONAL CENTER FOR DEFENSE MANUFACTURING AND MACHINING for work described as: THE TASK ORDER IS IN SUPPORT OF THE PERFORMANCE WORK STATEMENT, ENTITLED "ADVANCED COMPOSITE ASSEMBLY INNOVATION - PHASE 2". Key points: 1. Contract aims to advance composite assembly technologies, potentially leading to lighter, stronger materials for defense applications. 2. The task order is a follow-on effort, suggesting prior work has shown promise or established a need for continued development. 3. Competition was full and open after exclusion of sources, indicating a broad search for qualified contractors. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize contractor efficiency while managing cost risks. 5. Performance is expected over three years, allowing for substantial progress in research and development. 6. The primary focus on engineering services aligns with the need for specialized technical expertise in advanced materials.

Value Assessment

Rating: good

The contract value of $9.2 million for a three-year R&D effort in advanced composites appears reasonable given the specialized nature of the work. Benchmarking against similar engineering services contracts for advanced materials development suggests this is within a typical range. The Cost Plus Fixed Fee structure allows for cost reimbursement with a predetermined profit, which is common for research and development where final costs can be uncertain. Further analysis would require detailed cost breakdowns and comparison to specific R&D projects of similar scope and complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources may have been excluded based on predefined criteria, possibly related to specialized capabilities or prior performance. The exact number of bidders is not provided, but the 'full and open' designation suggests multiple entities were likely considered, promoting price discovery and innovation.

Taxpayer Impact: This competitive approach aims to ensure that taxpayer funds are used efficiently by soliciting proposals from a wide range of qualified sources, driving down costs and improving the quality of the services received.

Public Impact

The Department of Defense, specifically the Department of the Army, is the primary beneficiary, seeking advancements in material science for military applications. The contract will deliver innovative solutions in advanced composite assembly, potentially enhancing the performance and durability of defense equipment. The work is geographically focused in Pennsylvania, supporting the local economy and specialized manufacturing ecosystem. This effort is expected to foster innovation within the advanced materials sector and potentially create or sustain high-skilled engineering jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type, while suitable for R&D, requires diligent oversight to manage costs and prevent overruns.
The 'exclusion of sources' clause in the competition method warrants further scrutiny to ensure it did not unduly limit competition.
The specific technical advancements and their direct applicability to current defense needs require ongoing assessment.

Positive Signals

The award follows a full and open competition, suggesting a robust process for selecting the best value.
The three-year duration allows for sustained focus and development of complex technological solutions.
The contract is awarded to the National Center for Defense Manufacturing and Machining, an entity likely possessing specialized expertise in this domain.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically focusing on advanced materials and manufacturing processes. The defense manufacturing and machining industry is a critical component of the broader aerospace and defense sector, characterized by high R&D investment and specialized technical requirements. Spending in this area is driven by the need for technological superiority and enhanced performance of military platforms. Comparable spending benchmarks would involve other R&D contracts for novel materials and manufacturing techniques within the DoD.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided for this task order. Given the specialized nature of advanced composite assembly innovation, it is possible that the primary contractor possesses unique capabilities. However, analysis of the prime contractor's history with small business subcontracting would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting agency (Department of the Army) through program managers and contracting officers. Performance monitoring, cost tracking, and adherence to the Statement of Work are key accountability measures. Transparency is facilitated through contract award databases and reporting requirements. The Inspector General's office may conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Advanced Materials Research and Development
Defense Manufacturing Innovation
Composite Materials Engineering
Aerospace Engineering Services
Department of Defense Research Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Limited Competition Potential (Exclusion of Sources)
Technological Obsolescence
Integration Challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.2 million to NATIONAL CENTER FOR DEFENSE MANUFACTURING AND MACHINING. THE TASK ORDER IS IN SUPPORT OF THE PERFORMANCE WORK STATEMENT, ENTITLED "ADVANCED COMPOSITE ASSEMBLY INNOVATION - PHASE 2".

Who is the contractor on this award?

The obligated recipient is NATIONAL CENTER FOR DEFENSE MANUFACTURING AND MACHINING.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $9.2 million.

What is the period of performance?

Start: 2024-09-20. End: 2027-09-20.

What is the track record of the National Center for Defense Manufacturing and Machining (NCDMM) in delivering on similar advanced materials R&D contracts?

The National Center for Defense Manufacturing and Machining (NCDMM) has a significant track record in advancing manufacturing technologies, particularly in areas relevant to defense. As a non-profit organization, its focus is on applied research and development to solve critical manufacturing challenges for the U.S. industrial base. While specific details on past contracts of identical scope are not provided here, NCDMM is known for its work in areas like additive manufacturing, advanced composites, and digital manufacturing. Their involvement in previous government-funded projects, often in collaboration with industry and academia, suggests a capacity to manage complex R&D efforts. A deeper dive into their contract history with the Department of Defense and other agencies would reveal the scale and success of their prior engagements in advanced materials innovation.

How does the $9.2 million cost for this three-year R&D effort compare to similar advanced composite innovation projects?

The $9.2 million cost for a three-year R&D effort in advanced composite assembly innovation appears to be within a reasonable range for specialized defense research. Projects involving novel materials, complex assembly processes, and rigorous testing often require significant investment in specialized equipment, highly skilled personnel, and extensive research hours. Benchmarking against publicly available data for similar contracts within the Department of Defense or other federal agencies focused on aerospace and materials science suggests that costs can range from several million to tens of millions of dollars, depending on the project's scope, duration, and technological maturity. The Cost Plus Fixed Fee (CPFF) structure also influences the cost profile, as it aims to cover allowable costs plus a negotiated fixed fee, which is common for R&D where final costs are not precisely predictable.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract for advanced composite assembly?

The primary risks associated with this Cost Plus Fixed Fee (CPFF) contract revolve around cost control and contractor performance. While CPFF contracts are designed to incentivize efficiency by providing a fixed profit margin, they can also lead to cost overruns if the contractor does not manage expenses effectively. The government bears the risk of reimbursing allowable costs, making robust oversight crucial. Another risk is ensuring the contractor maintains focus on the defined objectives and delivers the expected technological advancements within the specified timeframe. Potential scope creep, where the project expands beyond its original intent, also poses a risk. Diligent monitoring of expenditures, regular progress reviews, and clear communication channels are essential to mitigate these risks and ensure the successful completion of the R&D effort.

What is the expected impact of this contract on the development and adoption of advanced composite materials in defense applications?

This contract is expected to significantly impact the development and adoption of advanced composite materials in defense applications by fostering innovation in assembly techniques. Advanced composites offer advantages such as reduced weight, increased strength, and improved resistance to corrosion and fatigue, which are critical for enhancing the performance and survivability of military platforms like aircraft, vehicles, and structures. By investing in 'Advanced Composite Assembly Innovation,' the Department of Defense aims to overcome current manufacturing limitations, potentially leading to more efficient production methods, lower costs, and the creation of next-generation materials. Successful outcomes could accelerate the integration of these advanced materials into new weapon systems and upgrades, providing a tangible technological edge.

How does the 'Full and Open Competition After Exclusion of Sources' approach influence the value and innovation derived from this contract?

The 'Full and Open Competition After Exclusion of Sources' approach aims to balance broad market solicitation with the need for specialized capabilities. By initially opening competition broadly and then potentially excluding sources based on specific, justifiable criteria (e.g., unique technical expertise, prior successful performance on related efforts, or specific security clearances), the agency seeks to ensure that the most qualified and capable contractors are considered. This method can lead to better value by attracting highly specialized firms that might not participate in a more restrictive competition, while still ensuring a competitive environment that drives innovation and price discovery. The effectiveness hinges on the transparency and justification of any source exclusions to prevent undue limitation of competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 486 CORNELL RD, BLAIRSVILLE, PA, 15717

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $9,199,997

Exercised Options: $9,199,997

Current Obligation: $9,199,997

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $6,306,148

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W31P4Q21D0026

IDV Type: IDC

Timeline